Final answer:
Investors should consider sustainability to ensure long-term environmental, social, and economic health, which impacts the overall success and viability of their investments. The integrated approach provided by InVEST helps decision makers understand the complex interdependencies involved. Sustainable investing can also drive innovation and avoid long-term negative consequences.
Step-by-step explanation:
Investors need to consider sustainability in investment decisions because it encompasses the long-term viability and health of the economic, environmental, and social systems. Sustainable investments focus on the conservation of resources, the reduction of greenhouse gas emissions, and the promotion of economic development without compromising the future. The InVEST software system, developed for integrated valuation of ecosystem services, assists in evaluating the impact of investments on various aspects of sustainability. It considers factors such as low risk, intergenerational obligations, and the potential for systematic change, like the initiatives seen in the fashion industry and agricultural practices in Brazil. Additionally, sustainability can lead to innovation and technology development which may help overcome environmental crises.
Ignoring sustainability can result in environmental degradation, such as increased greenhouse gases or deforestation, which can have long-term negative effects on both the planet and investment returns. Moreover, incorporating sustainability can avoid regulatory risks and cater to the growing demand for sustainable products, which may increase profitability for businesses.